QLD Impact of parent contributions on property settlement

[Matthew Edwards]

Hi there,
What is the impact/consideration given in family law splits when a parent of one partner has contributed to the family home?

Eg. the father of the husband contributed $50,000 for a house deposit, but was then a 1/3 owner of the property but didn’t contribute to ongoing mortgage repayments.

Is this considered as contributions from the husband as it’s their father, or is this not factored given the father became an owner of the property?

 

[sammy01]

how long ago? is dad on the title of the house?
In family law there is no set answer. A magistrate will look at all the details and make the call. Best way to avoid that is to come to an agreement between the parties.

 

[Matthew Edwards]

The property was purchased in 2014, and yes the father is a 1/3 owner of the property (and technically 1/3 the debt, but again doesn’t contribute to the mortgage). It wasn’t a gift of money to then use for the property purchase, it was actually the father becoming part owner in the property. Given the ownership element, I’d have thought it wouldn’t be considered a gift and considered as a contribution from the ex spouse.

 

[Atticus]

So what was the intention of the contribution from the father?... was it to facilitate the acquisition which the couple would not otherwise have afforded, & becoming a third owner was intended to protect that $50K in the event of a breakup?

If that is the case, then if the couple split & file for settlement with the courts, the father having an equitable interest can apply to become a party to proceedings... How that contribution is treated, will depend on the circumstances, but I would imagine if it is accepted to be a gift to the son then like all gifts, the 'value' erodes over time & is affected by how it's used... In this case the son chose to use it to assist in the acquisition of the marital home.

Ultimately the act allows the court very wide powers to adjust property interests as it sees fit... The court may conclude that the father is entitled to the $50K but should also contribute to any outstanding mortgage/costs..